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Regional optimization of infrastructure investment: A perspective based on embodied carbon efficiency

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  • Li, Li
  • Shen, Aolong
  • Chen, Yu
  • Wu, Wei

Abstract

Under the carbon neutrality target, optimizing infrastructure investment pathways and spatial layouts requires an integrated consideration of their embodied carbon emission effects. Based on a quantitative assessment of embodied carbon efficiency in infrastructure, this study delineates the provincial-level features and heterogeneities in optimal infrastructure investment. The findings indicate that, while the embodied carbon efficiency of infrastructure has shown an upward trend across provinces, the overall level remains relatively low. Results from the zero-sum game DEA model reveal that optimal infrastructure investment exhibits a spatial pattern characterized by “higher in the east and lower in the west”, aligning with the theory of regional economic gradient development. Using a data-driven club convergence algorithm, provinces are classified into three clubs according to the optimal infrastructure investment level. The results demonstrate a persistent divergence among clubs, highlighting the risk of a “Matthew effect”. Moreover, intra-club disparities in infrastructure investment are identified as the core drivers of regional inequality. The findings offer valuable insights for policymakers in formulating infrastructure investment strategies and carbon reduction policies.

Suggested Citation

  • Li, Li & Shen, Aolong & Chen, Yu & Wu, Wei, 2025. "Regional optimization of infrastructure investment: A perspective based on embodied carbon efficiency," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325021063
    DOI: 10.1016/j.frl.2025.108852
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    References listed on IDEAS

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